Jordan Belfort - The Wolf Of Wall St. Slams Bitcoin and Cryptocurrency

One of my twitter friends sent this to me this morning. https://twitter.com/nureinschritt and I have to say I'm really conflicted about his views towards the future of cryptocurrency. Part of me agrees "partially" with what he has to say.

If there was ever anyone that entered this space more skeptical than me, I'd be surprised. However the more I learned the more I fell in love with both the technology, much of the communities ideologies, and the community itself. We are on the precipice of some future changing events here if we succeed. Again I say IF, because I'm a realist, and believe there are those who indeed plan to stand in our way. I also believe the powers that be, will not give up control of their money without a fight! This I'm willing to bet my last satoshi on!

So Jordan tells everyone to sell. Cryptocurrency has no future, governments wont allow it, blah, blah, blah. Not financial advice, but I think this is a mistake. Nobody knows what the future holds, how regulators are planning to regulate, and we haven't even scratched the surface of what this technology is capable of. Selling at this point to me seems premature. Again not financial advise jut the opinion of The Dood.

He then goes on about how the banks are basically attacking bitcoin. Again I think he's premature in making this call. Visa & Mastercard have made announcements claiming to not allow users to buy crypto with credit cards, some have added additional fees. In some ways this seems reasonable. Cryptocurrency is a high risk investment, it's smart banking. If this whole thing goes tits up, the major credit card companies will take huge loses from the people that are unable to pay these loans back. On top of that I don't know of any stock trading accounts that allow you to fund your account with Visa or Mastercard either. Most people are still able to use ACH, and Wire Transfer and this is the way many people do it in order to fund trading accounts. On this I call FUD, not a big deal, and this is how people fund trading accounts. Nothing out of the ordinary if you ask me.

He goes on about exchanges hacks, market manipulation, and the Tethers debacle. Again I agree. Some of these hacks are questionable, or at least have to make you wonder. For those that have been around for awhile, Cryptsy is a perfect example. How many years later and we still don't have answers. If you can't see the market manipulation, then you're just not paying attention, and Tethers is and should be a serious concern.

Hacks are probably going to happen from time to time. If you ask me, these are the new bank robberies of our time. Even SWIFT has been hacked. These are the times we're living in, and this is the cost of doing business in this day and age. Eventually the SEC or some other government body with a three letter acronym will step in when they've seen and had enough with the blatant market manipulation, again I just don't see this as the end of bitcoin or cryptocurrency but the beginning of regulation and the era of the regulators. Tethers is a concern, and although I don't see it as the end of crypto if things aren't right, it will probably have effects on the industry equivalent to how Mt.GOX affected the early market of bitcoin.

He talks about ICO's briefly and again I sort of agree with him. Eventually regulators are going to hit this sector of our industry hard! I also agree that there's a high probability that arrests will be made. Wouldn't surprise me to see some kind of operation or sweep to scoop up all offenders at once. Again, I don't see this as the end of crypto.

On a final note he says cash out and take profits and don't HODL to zero. I agree. I sold a little at the top around 20k and a few people told me I'd regret it. HODL till the end. Weak hands!

Taking profits is good risk management. Should we panic sell everything. I think that's ridiculous and premature.

I could go on and on about this video but I'm not. In some ways, I do believe there's alot of "kool aid" drinking going on in the community. HODL to zero is a bad idea for your entire investment. However maybe put aside a small amount you are willing to allow to fall to zero. All the better if that small amount is already paid for and profit. He makes many valid points in this video, and points out some legitimate concerns. The governments could make crypto very difficult in the future and I've posted about this in the past. I think his call to sell is unwarranted and premature though.

I posted this for two reasons, 1) I don't like the way he went about this, and think it's extremely fuddish! 2) I think these are all valid concerns he raises, but just that, "concerns". Things to watch very carefully.

IMHO it would be a shame to miss out on one of the greatest financial opportunities of our time. I also feel it would be a travesty to walk away with zero if the proverbial shit ever hit the fan. Watch the regulators closely, practice good risk management, expect the worst and hope for the best. This has been one hell of a wild ride, and frankly I think this thing is just getting started!

Again nothing I post about is meant as financial advice. This is all strictly opinion. Seek a licensed financial adviser for financial advice, not some anonymous jackass on the net that refers to himself as The Dood.